FxWirePro: USD/JPY edges higher as yen weakens following weak manufacturing data

• USD/JPY edged higher on Wednesday as yen weakened after data showed Japan's factory activity extends declines in August.

• Japan’s manufacturing sector shrank for a second straight month in August, with U.S. tariffs dampening overseas demand, a private survey showed Thursday.

• Japan’s August flash manufacturing PMI rose to 49.9 from July’s 48.9, but stayed below the 50 growth threshold for a second month.

• Activity in Japan’s services sector expanded in August but at a weaker pace, with the flash services PMI dropping to 52.7 from July’s 53.6.

• Japan’s composite PMI, combining manufacturing and services, climbed to 51.9 in August from 51.6 in July, marking the strongest growth in six months.

• Immediate resistance is located at 147.92(SMA 20), any close above will push the pair towards 148.22(38.2%fib).

•  Support is seen at 146.15(50%fib) and break below could take the pair towards  145.80(Lower BB.

Recommendation: Good to buy around 147.50, with stop loss of 146.60 and target price of 148.20